LNG Plant in Texas Catches Fire, Energy Markets Tremble

An explosion and fire at an LNG plant in Freeport, TX, on Wednesday has sent shudders around the world about the actual fragility of global energy supplies, as well as America’s tired infrastructure. The plant is expected to stay closed for at least three weeks for repairs, dealing a major blow to overseas exports of American natural gas. The Freeport facility prepares gas for delivery to South Korea and China in addition to Europe, although 70% of it goes to the EU and UK. Gas prices in Europe shot up 20% Thursday, on top of already sky-high prices.